TORONTO, Dec. 8, 2021 /CNW/ - RBC Global Asset Management
Inc. ("RBC GAM Inc.") today announced plans to windup all RBC
Corporate Class Funds (the "Funds"). Effective on or about
March 25, 2022, RBC $U.S. Short Term
Income Class will close, and effective on or about April 8, 2022, all remaining Funds will merge
into their mutual fund trust equivalents, on a tax-deferred
basis.
Mergers of certain Funds
The following Funds will be
merged into their equivalent mutual fund trusts, which have the
same investment objectives and strategies, on or about April 8, 2022:
Terminating
Fund
|
Continuing
Fund
|
RBC Short Term Income
Class
|
RBC Canadian Money
Market Fund
|
BlueBay Global
Convertible Bond Class (Canada)
|
BlueBay Global
Convertible Bond Fund (Canada)
|
Phillips, Hager &
North Monthly Income Class
|
Phillips, Hager &
North Monthly Income Fund
|
RBC Balanced Growth
& Income Class
|
RBC Balanced Growth
& Income Fund
|
RBC Canadian Dividend
Class
|
RBC Private Canadian
Dividend Pool
|
RBC Canadian Equity
Class
|
RBC Private Canadian
Equity Pool
|
RBC QUBE Low
Volatility Canadian Equity Class
|
RBC QUBE Low
Volatility Canadian Equity Fund
|
Phillips, Hager &
North Canadian Equity Value Class
|
Phillips, Hager &
North Canadian Equity Value Fund
|
RBC Canadian Equity
Income Class
|
RBC Canadian Equity
Income Fund
|
RBC Canadian Mid-Cap
Equity Class
|
RBC Canadian Mid-Cap
Equity Fund
|
RBC North American
Value Class
|
RBC North American
Value Fund
|
RBC U.S. Dividend
Class
|
RBC U.S. Dividend
Fund
|
RBC U.S. Equity
Class
|
RBC U.S. Equity
Fund
|
RBC QUBE Low
Volatility U.S. Equity Class
|
RBC QUBE Low
Volatility U.S. Equity Fund
|
RBC U.S. Equity Value
Class
|
RBC U.S. Equity Value
Fund
|
Phillips, Hager &
North U.S. Multi-Style All-Cap Equity Class
|
Phillips, Hager &
North U.S. Multi-Style All-Cap Equity Fund
|
RBC U.S. Mid-Cap
Value Equity Class
|
RBC U.S. Mid-Cap
Value Equity Fund
|
RBC U.S. Small-Cap
Core Equity Class
|
RBC U.S. Small-Cap
Core Equity Fund
|
RBC International
Equity Class
|
RBC International
Equity Fund
|
Phillips, Hager &
North Overseas Equity Class
|
Phillips, Hager &
North Overseas Equity Fund
|
RBC European Equity
Class
|
RBC European Equity
Fund
|
RBC Emerging Markets
Equity Class
|
RBC Emerging Markets
Equity Fund
|
RBC Global Equity
Class
|
RBC Global Equity
Fund
|
RBC QUBE Low
Volatility Global Equity Class
|
RBC QUBE Low
Volatility Global Equity Fund
|
RBC Global Resources
Class
|
RBC Global Resources
Fund
|
Shareholders of the terminating Funds will receive an equivalent
series of units of the continuing fund, on a dollar-for-dollar and
tax-deferred basis. The terminating Funds will be wound up
following the merger.
Shareholders may redeem or switch their holdings in the
terminating Funds until market close on April 6, 2022.
Changes to tax legislation have removed the primary benefits of
corporate class funds and as a result, RBC GAM Inc. no longer
believes it is possible to consistently deliver tax benefits to
corporate class shareholders, over the long term, relative to
mutual fund trusts.
The Independent Review Committee of the Funds considered and
approved the proposed mergers, after determining that they achieve
a fair and reasonable result for the terminating Funds.
Closure of RBC $U.S. Short Term Income Class
RBC $U.S.
Short Term Income Class will be closed effective on or about
March 25, 2022. Shareholders may
redeem or switch their holdings in the Fund until market close on
March 23, 2022. Any remaining shares
will be redeemed, and the proceeds distributed to shareholders.
In the case of the Fund being held in registered plans, the
redemption proceeds will remain within the plan. There will be no
tax implications as a result of the transactions if shares are held
in a registered plan. If shares of the Fund are held in a
non-registered account, the closure of the Fund will be treated as
a deemed disposition, and may result in a taxable capital gain or
loss, depending on each shareholder's individual situation.
Shareholders of the Funds will be sent a written notice
detailing changes related to the mergers and closure at least 60
days prior to the effective dates.
Please consult your advisor and read the prospectus or Fund
Facts document before investing. There may be commissions, trailing
commissions, management fees and expenses associated with mutual
fund investments. Mutual funds are not guaranteed, their values
change frequently and past performance may not be repeated. RBC
Funds, BlueBay Funds and PH&N Funds are offered by RBC GAM Inc.
and distributed through authorized dealers in Canada. RBC GAM Inc. is a member of the RBC
GAM group of companies and an indirect wholly owned subsidiary of
Royal Bank of Canada.
About RBC
Royal Bank of Canada is a global financial institution with
a purpose-driven, principles-led approach to delivering leading
performance. Our success comes from the 87,000+ employees who
leverage their imaginations and insights to bring our vision,
values and strategy to life so we can help our clients thrive and
communities prosper. As Canada's
biggest bank, and one of the largest in the world based on market
capitalization, we have a diversified business model with a focus
on innovation and providing exceptional experiences to our 17
million clients in Canada, the
U.S. and 27 other countries. Learn more at rbc.com.
We are proud to support a broad range of community initiatives
through donations, community investments and employee volunteer
activities. See how at rbc.com/community-social-impact.
About RBC Global Asset Management
RBC Global Asset
Management (RBC GAM) is the asset management division of Royal
Bank of Canada (RBC) and includes
money managers 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 approximately $580 billion in
assets and have approximately 1,500 employees located across
Canada, the United States, Europe and Asia.
SOURCE RBC Global Asset Management Inc.