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.