TORONTO, March 13, 2013 /CNW/ - RBC Global Asset Management Inc. today announced that the RBC Target 2013 Corporate Bond Index ETF (TSX: RQA) will mature on Friday, November 22, 2013. This will be the first RBC Target Maturity Corporate Bond ETF to mature.
"Target maturity ETFs are still relatively new to Canadian investors," said Mark Neill, head of RBC ETFs. "By providing the maturity date of the RBC Target 2013 Corporate Bond Index ETF well in advance, our goal is to help investors make informed decisions with respect to their bond portfolio. This includes deciding whether to move their holdings into a subsequent maturity of an RBC ETF or hold them through to maturity."
The suite of RBC Target Maturity Corporate Bond ETFs includes nine fixed income corporate bond ETFs with maturities spanning from 2013 to 2021. These ETFs provide target maturity exposure, enabling investors to build customized portfolios tailored to their specific investment needs.
Unlike traditional ETFs, which have a perpetual life, target maturity ETFs have a specified maturity date that is 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 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 should decline as it approaches maturity, reducing sensitivity to interest rate changes. These ETFs do not seek to return any predetermined amount at maturity.
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 manages more than $280 billion in assets and has 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$593 billion of assets under administration, more than C$353 billion of assets under management and approximately 4,300 financial consultants, advisors, private bankers and trust officers.