New RBC Cornerstone Investor Program offers greater value
through lower fees and enhanced services
MINNEAPOLIS, MN, Aug. 3, 2015 /PRNewswire/ - RBC Global Asset
Management U.S. (RBC GAM) today introduced an innovative package of
significantly lower fees for U.S. mutual fund investors and
professional services to intermediaries.
The RBC Cornerstone Investor Program
Through this initiative - the RBC Cornerstone Investor Program -
RBC GAM is applying an institutional seed pricing model to all
shareholders in four of its mutual funds and enhanced services to
select intermediaries whose clients invest in those funds.
Pricing and Service
Under the Program, all shareholders in the participating funds will
benefit from a reduction in total expenses of approximately 39% to
44%. This reflects an adjustment in contractual fee waivers equal
to 50% of each fund's management fee. This cost reduction applies
to all current and new investors, and is effective today through
October 31, 2017. Effective
November 1, 2017, RBC GAM anticipates
that the cost of the funds will be incrementally raised over an
18-month period, to a level equal to or below the pre-Program
level.
Also under the Program, a select number of intermediaries whose
clients invest $10 million or more in
one of the participating funds will receive services akin to those
provided to holders of separate accounts available to institutional
investors: access to RBC GAM's institutional thought leadership,
institutional portfolio and product managers and economists, and
proprietary risk and portfolio management tools.
"RBC Global Asset Management has a long track record of serving
institutional investors with a focus on service excellence and
rigorous investment discipline," said Mike
Lee, Chief Executive Officer and Chief Investment Officer of
RBC GAM-U.S. "In today's market, investment advisors and their
clients are behaving more like institutions. They are looking for
proven investment expertise and sophisticated risk management. In
response, we have created the RBC Cornerstone Investor Program to
bring our proven institutional investment approach and service to
additional U.S. mutual fund intermediaries and investors."
Long-Term Strategy
The RBC Cornerstone Investor Program complements the ongoing
expansion of RBC GAM's retail service and product infrastructure.
By providing an incentive for investors to choose from a selection
of RBC GAM mutual funds, including four- and five-star Morningstar
rated funds with smaller asset bases, the Program aligns with RBC
GAM's approach in the institutional market.
"Expanding in the U.S. mutual fund market is an important part
of our global growth strategy," said Matthew Appelstein, Head of U.S. Sales and
Distribution, RBC GAM. "The RBC Cornerstone Investor Program is
innovative in two focused and deliberate ways to grow the smaller
funds in our line-up: it provides intermediaries with services that
have not traditionally been available outside of the institutional
marketplace, and also applies a fee structure for the four funds
that is lower than 90% of their Morningstar peer groups."
RBC GAM's expansion in the U.S. is accelerating. The company
recently announced a series of senior level hires, bringing the
total number of U.S. distribution, client service and marketing
professionals to 62, an increase of 44% over the past three years.
RBC GAM has over 150 employees throughout the U.S. including
offices in Boston, Minneapolis, New
York and Chicago.
RBC GAM has also expanded its product line-up in recent years,
including five new mutual funds launched in December 2014. In total, RBC GAM has introduced
14 new funds in the past four years across a variety of different
share classes and asset classes.
Funds in the RBC Cornerstone Investor Program
The Program will apply to the following four mutual funds as of
August 3, 2015:
- RBC Emerging Markets Equity Fund
The RBC Emerging Markets Equity Fund seeks to emphasize quality and
long-term growth at a reasonable price and is managed by lead
portfolio manager Philippe Langham
and the RBC GAM Emerging Markets Equity team. This London-based team is responsible for over
$2 billion in assets across emerging
markets equity strategies
The RBC Emerging Markets Equity Fund was previously in the
65th percentile for costs within its peer group;
effective today, it sits within the 93rd percentile for
costs1. The total cost reduction to shareholders of the
fund is approximately 40%.
- RBC Mid Cap Value Fund
The RBC Mid Cap Value Fund seeks to provide long-term capital
appreciation by investing in equity securities that offer
attractive value relative to the overall market. The fund is
managed by lead portfolio managers Lance
James and Steve Kylander. The
management team is responsible for nearly $3
billion in assets across micro cap, small cap and mid cap
equity strategies.
The RBC Mid Cap Value Fund Class I has a 5-star Overall Morningstar
RatingTM out of 429 Mid Cap Value Funds as of
June 30, 2015, based on risk-adjusted
returns. The fund was previously in the 53rd percentile
for costs within its peer group; effective today, it sits within
the 97th percentile for costs1. The total
cost reduction to shareholders of the fund is approximately
39%.
- RBC BlueBay Emerging Market Corporate Bond Fund
The RBC BlueBay Emerging Market Corporate Bond Fund invests
primarily in fixed income securities issued by companies and
financial institutions based in emerging market countries. The fund
is sub-advised by BlueBay Asset Management and a 34-person team
dedicated to emerging market debt strategies.
The RBC BlueBay Emerging Market Corporate Bond Fund Class I has a
4-star Overall Morningstar RatingTM out of 246 Emerging
Market Bond Funds as of June 30,
2015, based on risk-adjusted returns. The fund was
previously in the 25th percentile for costs within its
peer group; effective today, it sits within the 99th
percentile for costs1. The total cost reduction to
shareholders of the fund is approximately 43%.
- RBC BlueBay Global High Yield Bond Fund
The RBC BlueBay Global High Yield Bond Fund invests primarily in
fixed income securities issued by sub-investment grade companies
globally. The fund is sub-advised by BlueBay Asset Management and a
38-person team dedicated to global high yield bond strategies.
The RBC BlueBay Global High Yield Bond Fund Class I has a 4-star
Overall Morningstar RatingTM out of 611 High Yield Bond
Funds as of June 30, 2015, based on
risk-adjusted returns. The fund was previously in the
38th percentile for costs within its peer group;
effective today, it sits within the 98th percentile for
costs1. The total cost reduction to shareholders of the
fund is approximately 44%.
For further information about these funds, please visit
https://us.rbcgam.com/mutual-funds/default.fs.
About RBC Global Asset 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 and Phillips, Hager & North Investment Management.
RBC GAM is a provider of global investment management services and
solutions to individual, high-net-worth and institutional investors
through mutual funds, exchange-traded funds, hedge funds, pooled
funds, separate accounts and specialty investment strategies. RBC
GAM group of companies manage more than $300
billion USD in assets and have approximately 1,300 employees
located across Canada,
the United States, Europe and Asia.
Past performance is not a guarantee of future
results.
Before investing, you should carefully consider a fund's
investment objectives, risks, charges and expenses. This and other
information is included in the prospectus, which you can request by
visiting https://us.rbcgam.com/mutual-funds or calling
800.422.2766. Please read the prospectus carefully before
investing.
Mutual fund investing involves risk. Principal loss is
possible. Investing in mid cap, small cap, and micro cap companies
involves additional risks, including greater fluctuations in value
and lack of liquidity. Each Fund's risks are more fully described
in the prospectus. Although the Funds may not generally invest in
initial public offerings (IPOs), they may have the ability to.
Investments in IPOs typically involve greater price volatility
resulting in increased turnover and expenses as well as the
potential for taxable gains. The Funds may invest in foreign
securities which involve greater volatility and political, economic
and currency risks and differences in accounting methods. These
risks can be greater in emerging markets. Investments in debt
securities typically decrease in value when interest rates rise.
This risk is usually greater for longer-term debt securities.
Investments in lower-rated and non-rated securities presents a
greater risk of loss to principal and interest than higher-rated
securities. Derivatives such as futures, forwards, and swaps
involve risks different from, and in certain cases, greater than
the risks presented by more traditional investments.
Non-diversified funds may be more volatile than diversified funds
that hold a greater number of securities. Absolute return funds may
not achieve their goals and are not intended to outperform stocks
and bonds during strong market rallies and may underperform during
periods of strong positive market performance.
For each fund with at least a three-year history, Morningstar
calculates a Morningstar RatingTM based on a Morningstar
Risk-Adjusted Return measure that accounts for variation in a
fund's monthly performance (including the effects of sales charges,
loads, and redemption fees), placing more emphasis on downward
variations and rewarding consistent performance. The top 10% of
funds in each category receive 5 stars, the next 22.5% receive 4
stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars
and the bottom 10% receive 1 star. (Each share class is counted as
a fraction of one fund within this scale and rated separately,
which may cause slight variations in the distribution percentages.)
The Overall Morningstar RatingTM for a fund is derived
from a weighted average of the performance figures associated with
its three-, five- and 10-year (if applicable) Morningstar Rating
metrics.
RBC Midcap Value Fund Class I was rated against the following
numbers of U.S.-domiciled Mid-Cap Value Funds over the following
time periods: 429 funds in the last three years and 370 funds in
the last five years. With respect to these Mid-Cap Value Funds, RBC
Midcap Value Fund received a Morningstar Rating of five stars and
five stars for the three- and five-year periods, respectively.
Morningstar Rating is for the I share class only; other classes may
have different performance characteristics. Past performance is no
guarantee of future results.
RBC BlueBay Emerging Market Corporate Bond Fund Class I was
rated against the following numbers of U.S.-domiciled Emerging
Market Bond funds over the following time periods: 246 over the
last three years. With respect to these Emerging Market Bond Funds,
RBC BlueBay Emerging Market Corporate Bond Fund received a
Morningstar Rating of four stars. Morningstar Rating is for the I
share class only; other classes may have different performance
characteristics. Past performance is no guarantee of future
results.
RBC BlueBay Global High Yield Bond Fund Class I was rated
against the following numbers of U.S.-domiciled High Yield Bond
funds over the following time periods: 611 funds over the last
three years. With respect to these High Yield Bond funds, RBC
BlueBay Global High Yield Bond Fund received a Morningstar Rating
of four stars. Morningstar Rating is for the I share class only;
other classes may have different performance characteristics. Past
performance is no guarantee of future results.
RBC Global Asset Management (U.S.) Inc. ("RBC Global Asset
Management - US" or "RBC GAM-US") is a federally registered
investment adviser founded in 1983. RBC Global Asset Management
(RBC GAM) is the asset management division of Royal Bank of
Canada (RBC) which includes RBC
Global Asset Management (U.S.) Inc., RBC Global Asset Management
Inc., RBC Global Asset Management (UK) Limited, RBC Alternative
Asset Management Inc., BlueBay Asset Management LLP and BlueBay
Asset Management USA LLC, which
are separate, but affiliated corporate entities. ®/™ Trademark(s)
of Royal Bank of Canada. Used
under license. © 2015 RBC Global Asset Management (U.S.) Inc.
RBC Global Asset Management (U.S.) Inc. serves as investment
adviser for RBC Funds. The RBC Funds are distributed by Quasar
Distributors, LLC, an affiliate of U.S. Bancorp Fund Services,
LLC.
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1 Data source used in calculations, Morningstar Direct
as of 6/30/15.
SOURCE RBC Global Asset Management (U.S.)