RBC Global Asset Management Inc. announces changes to RBC ETFs and the maturity date of RBC Target 2023 Corporate Bond Index ETF

TORONTO, April 13, 2023 /CNW/ - RBC Global Asset Management Inc. ("RBC GAM Inc.") today announced changes to several RBC ETFs in its suite of RBC Target Maturity Corporate Bond Index ETFs ("RBC TMCBs"), including management fee reductions and changes to their maturity dates. In addition, RBC GAM Inc. also announced a change to the unitholder right to redeem for cash for all RBC ETFs and ETF Series of RBC Funds.

Management fee reductions – RBC TMCBs
Effective immediately, the management fee for each RBC TMCB will be reduced from 0.25% to 0.20%, with the exception of RBC Target 2023 Corporate Bond Index ETF (TSX: RQK), which had its management fee reduced to 0.20% on January 1, 2023, as stated in its prospectus.

Change in maturity dates of several RBC TMCBs and maturity date of RBC Target 2023 Corporate Bond Index ETF
In response to advisor feedback, the maturity dates of several RBC TMCBs are being advanced to "on or about September 30" from "on or about November 30." This change gives advisors more time to re-invest the maturity proceeds of the RBC TMCBs in advance of year end.

In connection with the above, RBC Target 2023 Corporate Bond Index ETF will mature on or about September 15, 2023.

The chart below summarizes the changes being made to the suite of RBC TMCBs:

Unlike traditional exchange-traded funds ("ETFs") which have a perpetual life, target maturity ETFs have a specified maturity date. When the ETF reaches its maturity date, the ETF's final net asset value ("NAV") is returned to the current unitholders.

A target maturity ETF's portfolio contains 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 can be expected to decline as it approaches maturity, reducing sensitivity to interest rate changes. These ETFs do not seek to return any predetermined amount at maturity.

Further details of the RBC Target 2023 Corporate Bond Index ETF maturity will be mailed to unitholders at least 60 days prior to the maturity date. RBC GAM Inc. will issue an additional press release on or about the maturity date of RBC Target 2023 Corporate Bond Index ETF confirming final details of the maturity.

Change to right to redeem for cash for all RBC ETFs and ETF Series of RBC Funds
The unitholder right to redeem for cash (currently for a redemption price equal to 95% of net asset value of the units of the applicable RBC ETF or ETF Series of RBC Funds on the effective day of the redemption) is being changed to align with current market practice.

Effective on or about April 21, 2023, unitholders may redeem units of an RBC ETF or ETF Series of RBC Funds for cash at a redemption price per unit equal to the lesser of:

a) 95% of the closing price for the units of the applicable RBC ETF or ETF Series of RBC Funds on the TSX or Neo Exchange, as applicable, on the effective day of the redemption, and

b) The net asset value per unit of the applicable RBC ETF or ETF Series of RBC Funds on the effective day of the redemption.

Unitholders will generally be able to sell (rather than redeem) units at the full market price on the TSX or Neo Exchange, as applicable, through a registered broker or dealer subject only to customary brokerage commissions.

For further information regarding RBC ETFs, please visit www.rbcgam.com/etfsolutions.

Commissions, management fees and expenses all may be associated with investments in mutual funds and exchange-traded funds (ETFs). Please read the ETF Facts or prospectus of the relevant RBC ETF or ETF Series unit of the RBC Fund before investing. Mutual funds and ETFs are not guaranteed, their values change frequently and past performance may not be repeated. ETF units and ETF Series units of RBC Funds are bought and sold at market price on a stock exchange and brokerage commissions will reduce returns. Index returns do not represent RBC ETF returns. RBC ETFs are managed by RBC Global Asset Management Inc., which is a member of the RBC GAM group of companies and an indirect wholly owned subsidiary of Royal Bank of Canada. RBC Funds are offered by RBC Global Asset Management Inc. and distributed through authorized dealers in Canada.

RBC Target 2023 Corporate Bond Index ETF, RBC Target 2024 Corporate Bond Index ETF, RBC Target 2025 Corporate Bond Index ETF, RBC Target 2026 Corporate Bond Index ETF, RBC Target 2027 Corporate Bond Index ETF, RBC Target 2028 Corporate Bond Index ETF and RBC Target 2029 Corporate Bond Index ETF (collectively, the "TMCB ETFs") do not seek to deliver a predetermined amount at maturity, and the amount an investor receives may be more or less than their original investment. The TMCB ETFs have been developed solely by RBC GAM Inc., and are not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the "LSE Group").

All rights in the FTSE Canada 2023 Maturity Corporate Bond Index, FTSE Canada 2024 Maturity Corporate Bond Index, FTSE Canada 2025 Maturity Corporate Bond Index, FTSE Canada 2026 Maturity Corporate Bond Index, FTSE Canada 2027 Maturity Corporate Bond Index, FTSE Canada 2028 Maturity Corporate Bond Index and FTSE Canada 2029 Maturity Corporate Bond Index (collectively, the "FTSE Maturity Corporate Bond Indices") vest in the relevant LSE Group company which owns the FTSE Maturity Corporate Bond Indices. "FTSE®" is a trade mark of the relevant LSE Group company and is used by any other LSE Group company under license.

The FTSE Maturity Corporate Bond Indices are calculated by or on behalf of FTSE Global Debt Capital Markets Inc. or its affiliate, agent or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the FTSE Maturity Corporate Bond Indices or (b) investment in or operation of the TMCB ETFs. The LSE Group makes no claim, prediction, warranty or representation either as to the results to be obtained from the TMCB ETFs or the suitability of the FTSE Maturity Corporate Bond Indices for the purpose to which they are being put by RBC GAM Inc.

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 97,000+ 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 $525 billion in assets and have approximately 1,500 employees located across Canada, the United States, Europe and Asia.

SOURCE RBC Global Asset Management Inc.

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