RBC Global Asset Management (U.S.) Inc. announces fee reductions across mutual fund lineup, the launch of two new mutual funds and changes to two mutual funds

MINNEAPOLIS, MN, Oct. 3, 2017 /PRNewswire/ - RBC Global Asset Management (U.S.) Inc. (RBC GAM‑US) today announced effective fee reductions across its lineup of U.S. mutual funds, along with changes to two RBC BlueBay Funds. In addition to these changes, RBC GAM‑US has announced the launch of the RBC Emerging Markets Value Equity Fund and the RBC Impact Bond Fund, available to U.S. investors later this year.

"We have a long-standing history of providing exceptional value and aligning our efforts with the interests of our clients," said Mike Lee, CEO of RBC GAM‑US. "Following a period of extensive research and analysis, we are excited to announce these changes and to continue to bring our expertise as investors to the marketplace. We believe that these changes not only bring more value to our clients, but also position us well for future growth in the U.S. market."

Lower fees for investors
RBC GAM‑US has lowered the net expense ratio on eight U.S. mutual funds, bringing the fees for more than 90% of the funds in the suite to or below the industry median. Effective immediately, the new net expense ratios for Class I shares of these funds will be 0.28%-0.64% for U.S. fixed income and impact investing funds; 0.45%-0.88% for global credit funds; 0.82%-1.09% for U.S. equity funds; and 0.725%-1.45% for global equity funds.

"We believe that RBC GAM‑US offers exceptional value for actively managed mutual funds," continued Lee. "We are excited to implement these changes and to continue to earn our clients' confidence and trust by offering our investment expertise with fees that are at or below the industry median."

Bringing diverse investment expertise to U.S. investors
RBC GAM-US continues to offer U.S. investors a diverse suite of investment products, including 16 mutual funds across different asset classes, representing global and emerging markets equity, global fixed income and U.S. equity and fixed income.

Two new mutual funds, the RBC Emerging Markets Value Equity Fund and RBC Impact Bond Fund, will be available to U.S. investors later this year. Further details regarding the new funds will be publicly announced over the coming months.

"As we continue to grow our presence in the U.S. market, our teams continually seek to align our product offerings with changing industry dynamics and needs," continued Lee. "The launch of these new products expands on our long-standing history of investment expertise in both the emerging market equity space and the impact investing space to investors across the country. Leveraging the unique skill sets of these teams provides us with an exciting opportunity to create value for our clients."

Modifications for better alignment
RBC GAM‑US has made the following changes to two RBC BlueBay Funds. These changes reflect a strategic realignment to leverage the breadth and depth of the emerging market debt and high yield capabilities that our affiliate, BlueBay Asset Management, brings to U.S. investors.

Effective November 1, the RBC BlueBay Emerging Market Select Bond Fund will be named the RBC BlueBay Emerging Market Debt Fund. The Fund's benchmark will be 100% the JPM EMBI Global Diversified Index.

Effective November 1, the RBC BlueBay Global High Yield Bond Fund will be named the RBC BlueBay High Yield Bond Fund. The Fund's benchmark will be the BAML High Yield Master II Index. Additionally, the Fund will have a prominent environmental, social and governance (ESG) overlay embedded in its process.

The changes to these strategies and benchmarks reflect U.S. investors' appetite for exposure to hard currency and U.S. high yield, respectively, with the flexibility for opportunistic off-benchmark positions.

About RBC Global Asset Management
RBC Global Asset Management (RBC GAM) is the asset management division of Royal Bank of Canada (RBC) and includes RBC GAM Inc. and institutional 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 manages approximately $400 billion in assets and has approximately 1,400 employees located across Canada, the United States, Europe and Asia.

The gross expense ratios for Class I shares of the Funds whose net expense ratios are changing are: 1.12% for the RBC Ultra-Short Fixed Income Fund, 1.80% for the RBC BlueBay Emerging Market Select Bond Fund, 1.03% for the RBC BlueBay Diversified Credit Fund, 1.05% for the RBC SMID Cap Growth Fund, 2.71% for the RBC Small Cap Value Fund, 4.76% for the RBC Emerging Markets Small Cap Equity Fund, 3.17% for the RBC Global Opportunities Fund, and 1.84% for the RBC International Opportunities Fund.

The J.P. Morgan Emerging Market Bond Index tracks the performance of U.S. dollar-denominated Brady bonds, Eurobonds, and traded loans issued by sovereign and quasi-sovereign entities in emerging markets. The J.P. Morgan Emerging Market Bond Index Global Diversified (JPM EMBI Global Diversified) limits the weights of countries with larger debt stocks by including only a specified portion of these countries' eligible current face amounts of debt outstanding. You cannot invest directly in an index.

The BofA Merrill Lynch High Yield Master II Index (BAML High Yield Master II Index) tracks the performance of U.S. dollar-denominated below investment grade corporate debt publicly issued in the U.S. domestic market.

Before investing, you should consider carefully a fund's investment objectives, risks, charges, and expenses. This and other information is in the prospectus, which you can request by visiting https://us.rbcgam.com/mutual-funds/literature/content/default.fs or calling 800-422-2766. Please read the prospectus carefully before investing.

The information about the RBC Emerging Markets Value Equity Fund and RBC Impact Bond Fund in this communication is not complete and may be changed. We may not sell these securities until the registration statement filed with the U.S. Securities and Exchange Commission (SEC) is effective. This communication is not an offer to sell these securities and is not soliciting an offer to buy these securities in any State where the offer or sale is not permitted.

The SEC does not endorse, indemnify, approve, or disapprove of any security.

Mutual fund investing involves risk. Principal loss is possible. Investing in mid, small, and micro capitalization companies involves greater risks such as more volatility and less liquidity than larger companies. Foreign securities involve greater volatility and political, economic, and currency risks, and differences in accounting methods. These risks may be greater in emerging markets. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in lower- and non-rated securities present a greater risk of loss to principal and interest than higher-rated securities. Investing in derivatives involves special risks including correlation, counterparty, liquidity, operational, accounting, and tax risks. These risks, in certain cases, may be greater than risks presented by more traditional investments. Non-diversified funds may concentrate their assets in fewer individual holdings than a diversified fund and therefore be more exposed to individual security volatility than diversified funds.

RBC Global Asset Management (U.S.) Inc. is the Adviser for the RBC Funds. The Global Equity Mutual Funds are sub-advised by RBC Global Asset Management (UK) Limited. The Global Fixed Income Mutual Funds are sub-advised by BlueBay Asset Management LLP, a wholly owned subsidiary of RBC. The RBC BlueBay Global High Yield Bond and Diversified Credit Funds are also sub-advised by BlueBay Asset Management USA LLC, a wholly owned subsidiary of RBC. The Funds are distributed by Quasar Distributors, LLC. Securities are offered through RBC Wealth Management, a division of RBC Capital Markets, LLC, member NYSE/FINRA/SIPC.

SOURCE RBC Global Asset Management (U.S.)