TORONTO, April 3, 2017 /CNW/ - RBC Global Asset Management Inc. ("RBC GAM Inc.") announced today a number of changes to certain RBC Funds and PH&N Funds, including mergers, fee reductions and proposed changes to investment objectives. Some of these changes will be subject to unitholder and regulatory approval.
Fund mergers: PH&N Community Values Funds and RBC Jantzi Funds
RBC GAM Inc. currently offers two separate fund line-ups that adhere to socially responsible investing (SRI) principles: PH&N Community Values Funds and RBC Jantzi Funds. To reduce duplication between these two fund line-ups, the following funds will be merging effective June 30, 2017:
| Terminating Funds * |
Continuing Funds |
| Phillips, Hager & North Community Values Balanced Fund |
RBC Jantzi Balanced Fund |
| Phillips, Hager & North Community Values Canadian Equity Fund |
RBC Jantzi Canadian Equity Fund |
| Phillips, Hager & North Community Values Global Equity Fund |
RBC Jantzi Global Equity Fund |
| * Phillips, Hager & North Community Values Bond Fund will not be subject to a merger. |
Unitholders of each series of the terminating funds set out above will receive an equivalent series of units of the corresponding continuing fund on a dollar-for-dollar and tax-deferred basis. Each of the terminating funds will be wound down following the mergers.
The Independent Review Committee of RBC Funds and PH&N Funds considered and approved the proposed mergers, after determining that the mergers achieve a fair and reasonable result for each of the applicable funds.
Unitholders of the terminating funds will be sent a written notice detailing changes related to the mergers at least 60 days prior to the effective date. Unitholders will have the right to redeem units of the terminating funds up to the close of business on the business day immediately preceding the effective date of the mergers.
Following the mergers, RBC GAM Inc. will offer Canadian investors a single line-up of funds that use a process to screen portfolio holdings using SRI criteria, which determines each fund's investable universe.
Fee reductions: RBC Jantzi Funds
Effective June 30, 2017, the management fees and administration fees of the RBC Jantzi Funds will be reduced as follows:
| Management Fee |
Current |
Effective June 30, 2017 |
| RBC Jantzi Balanced Fund – Series A / Advisor Series |
1.85% |
1.75% |
| RBC Jantzi Balanced Fund – Series D |
1.10% |
1.00% |
| RBC Jantzi Balanced Fund – Series F |
0.85% |
0.75% |
| Administration Fee |
Current |
Effective June 30, 2017 |
| RBC Jantzi Balanced Fund – Series A |
0.15% |
0.10% |
| RBC Jantzi Canadian Equity Fund – Series A |
0.15% |
0.10% |
| RBC Jantzi Global Equity Fund – Series A |
0.20% |
0.15% |
Sub-advisor changes: RBC Jantzi Global Equity Fund
Effective on or about June 30, 2017, RBC Global Asset Management (UK) Limited will become the sole sub-advisor of the RBC Jantzi Global Equity Fund.
Proposed investment objective changes: RBC Jantzi Balanced Fund
Subject to unitholder and regulatory approval, RBC GAM Inc. is proposing to change the investment objective of the RBC Jantzi Balanced Fund to provide the fund with the flexibility to invest its assets primarily in units of other funds that are managed by RBC GAM Inc. or an affiliate.
Proposed investment objective and benchmark changes: RBC Index Funds
Subject to unitholder and regulatory approval, RBC GAM Inc. is proposing to change the investment objectives and benchmarks for the RBC Index Funds as follows:
| RBC Index Fund |
Proposed investment objective change |
| RBC Canadian Government Bond Index Fund |
Provide the funds with the flexibility to track the performance of their benchmark index by investing either directly in fixed-income and equity securities or indirectly through derivatives or investment in units of other mutual funds managed by RBC GAM Inc. or an affiliate. |
| RBC Canadian Index Fund |
|
| RBC U.S. Index Fund |
|
| RBC U.S. Index Currency Neutral Fund |
|
| RBC International Index Currency Neutral Fund |
|
| RBC Index Fund |
Proposed benchmark change |
| RBC Canadian Government Bond Index Fund* |
Change to a benchmark that tracks the performance of the broad Canadian bond market, including government and corporate bonds*. Proposed benchmark: FTSE TMX Canada Universe + Maple Bond Index |
| RBC Canadian Index Fund |
Change to a new benchmark that continues to track the performance of the Canadian equity market. Proposed benchmark: FTSE Canada All Cap Domestic Index |
| RBC U.S. Index Fund |
Change to a new benchmark that continues to track the performance of the U.S. equity market in Canadian dollar terms. Proposed benchmark: FTSE USA Index |
| RBC U.S. Index Currency Neutral Fund |
Change to a new benchmark that continues to track the performance of the U.S. equity market in U.S. dollar terms. Proposed benchmark: FTSE USA Hedged 100% to CAD Index |
| RBC International Index Currency Neutral Fund |
Change to a new benchmark that continues to track the performance of international equity markets in local currency terms. Proposed benchmark: FTSE Developed ex North America Hedged 100% to CAD Index |
| * If approved, the name of the fund will change to RBC Canadian Bond Index Fund. |
The Independent Review Committee of the RBC Funds and PH&N Funds considered and provided a positive recommendation for the proposed investment objective and benchmark changes, after determining that the changes achieve a fair and reasonable result for each of the applicable funds.
Unitholder Approvals
RBC GAM Inc. will seek the required unitholder approvals for the proposed investment objective and benchmark changes to the RBC Jantzi Balanced Fund and the RBC Index Funds, as applicable, at a special unitholder meeting to be held on or about Thursday June 22, 2017, in Toronto, Ontario.
Notice of the meeting and the management information circular for the meeting containing full details of the proposals will be mailed on or about May 19, 2017, to unitholders of record as of May 8, 2017. If the necessary approvals are received, the investment objective changes are expected to be effective June 30, 2017 or thereafter.
Please consult your advisor and read the prospectus or Fund Facts document before investing. There may be commissions, trailing commissions, management fees and expenses associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. RBC Funds, BlueBay Funds and PH&N Funds are offered by RBC GAM Inc. and distributed through authorized dealers.
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 manage more than C$390 billion in assets and have approximately 1,400 employees located across Canada, the United States, Europe and Asia.
SOURCE RBC Global Asset Management Inc.
Leah Commisso, RBC GAM Corporate Communications, 416-955-6498, [email protected]
Share this article