RBC Global Asset Management Inc. announces final details on maturity of RBC
Target 2013 Corporate Bond Index ETF
TORONTO, Sept. 13, 2013 /CNW/ - RBC Global Asset Management Inc. (RBC GAM)
today announced final details regarding the scheduled maturity of RBC Target
2013 Corporate Bond Index ETF (TSX: RQA).
As announced earlier this year, RBC Target 2013 Corporate Bond Index ETF will
mature effective at the close of business on Friday, November 22, 2013. As a
result, no direct subscriptions for units of RQA will be accepted after the
close of business today, Friday September 13, 2013.
Redemption requests for the RBC Target 2013 Corporate Bond Index ETF are
expected to be accepted until the close of business on Friday November 15,
2013. RQA 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 19, 2013. All units still held by investors following delisting will
be subject to mandatory redemption on the maturity date of Friday, November
"This is the first RBC Target Maturity Corporate Bond ETF to mature, and while
this type of fund is still relatively new to Canadian investors, it has
demonstrated the potential to deliver attractive income to meet investor needs
over a defined period of time," said Mark Neill, head of RBC ETFs.
The proceeds from RQA may be invested into a subsequent maturity of an RBC
Target Maturity Corporate Bond ETF or utilized in a ladder strategy to help
manage interest rate and reinvestment risk.
The suite of RBC Target Maturity Corporate Bond ETFs includes nine corporate
bond ETFs with maturities spanning from 2013 to 2021. These ETFs provide
targeted maturity exposure, enabling investors to build customized fixed
income portfolios tailored to specific investment needs.
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 unit holders.
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
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
manage more than $290 billion in assets and have 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$615
billion of assets under administration, more than C$373 billion of assets
under management and over 4,400 financial consultants, advisors, private
bankers, and trust officers. For more information, please visit
*Scorpio Partnership Global Private Banking KPI Benchmark 2013. 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.
Matt Gierasimczuk, RBC GAM Communications, 416
974-2124,firstname.lastname@example.org Leah Commisso RBC GAM Media
Relations, 416 955-6498,email@example.com
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CO: RBC Global Asset Management
NI: FIN FIN
-0- Sep/13/2013 12:30 GMT
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