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 22, 2013.
"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 changes.
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 www.rbcwealthmanagement.com.
*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. Member NYSE/FINRA/SIPC.
SOURCE RBC
