RBC Global Asset Management Inc. announces changes to RBC Capital Class Funds

RBC Global Asset Management Inc. announces changes to RBC Capital Class Funds 
TORONTO, April 2, 2013 /CNW/ - The recently released 2013 Federal Budget 
included a proposal to eliminate the tax benefits associated with forward 
agreements used by certain investment funds to achieve capital gains treatment 
on income that would otherwise be treated as ordinary income. This proposal 
affects a number of investment funds across the industry, including the 
following RBC Capital Class Funds (the Funds): 

    --  RBC Bond Capital Class
    --  Phillips Hager & North Total Return Bond Capital Class
    --  RBC High Yield Bond Capital Class

RBC Global Asset Management Inc. expects that the tax treatment of the Funds, 
which were using forward contracts prior to the budget announcement on March 
21, 2013, will remain unchanged for a period of at least 180 days from that 
date to allow for an orderly transition to the proposed new regulations.

During the 180-day transition period, the Funds will continue to operate in 
the same manner as prior to the budget announcement and existing investors 
will continue to receive the same tax treatment they received prior to the 
budget announcement. However, the Funds will be closed to new and additional 
investments effective immediately.

RBC Global Asset Management Inc. is awaiting further guidance from the Federal 
Government with respect to the implementation of the budget proposal and will 
continue to provide updates as further information becomes available.

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 C$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


To view this news release in HTML formatting, please use the following URL: 

CO: RBC Global Asset Management
ST: Ontario

-0- Apr/02/2013 20:00 GMT

Press spacebar to pause and continue. Press esc to stop.