TORONTO, Sept. 20, 2022 /CNW/ - RBC Global Asset Management Inc. ("RBC GAM Inc.") today announced changes to several of its Funds, including a transition from the specified percentage pricing methodology to a fixed management fee, as well as an administration fee reduction.
RBC GAM Inc. will transition from the specified percentage pricing methodology to a fixed management fee for the following RBC Funds (collectively, the "Portfolios"):
- RBC Select Very Conservative Portfolio (Series A, T5)
- RBC Select Conservative Portfolio (Series A, T5)
- RBC Select Balanced Portfolio (Series A, T5)
- RBC Select Growth Portfolio (Series A, T5)
- RBC Select Aggressive Growth Portfolio (Series A, T5)
- RBC Select Choices Conservative Portfolio (Series A)
- RBC Select Choices Balanced Portfolio (Series A)
- RBC Select Choices Growth Portfolio (Series A)
- RBC Select Choices Aggressive Growth Portfolio (Series A)
- RBC Managed Payout Solution (Series A)
- RBC Managed Payout Solution – Enhanced (Series A)
- RBC Target 2025 Education Fund (Series A, D)
- RBC Target 2030 Education Fund (Series A, D)
The management fee of the Portfolios is currently variable and is determined on a basis such that all fees and expenses that comprise the management expense ratio (the "MER"), other than the additional cost of HST, will be equal to a specified percentage of the portfolio. The specified percentage includes the management fee, administration fee, taxes (other than the additional cost of HST), other fund costs and any fees and expenses of the underlying funds in which the Portfolios invest.
Effective January 1, 2023, the management fee will be fixed, and the MER of the Portfolios will comprise the management fee, administration fee, taxes, other fund costs and any fees and expenses of the underlying funds in which the Portfolios invest. By fixing the management fee, investors will be able to more easily compare management fees of the Portfolios to other mutual funds.
The management fees will be fixed at the rates set out in the table below and will be disclosed in the Portfolios' simplified prospectus. In all cases, the management fees will be set at levels that are the same or lower than current levels paid by each Portfolio.
Portfolio |
Series |
Management Fee |
||
Current (Variable)1 |
New (Fixed) |
Change |
||
RBC Select Very Conservative Portfolio |
A |
1.45 % |
1.44 % |
-0.01 % |
T5 |
1.44 % |
1.44 % |
No change |
|
RBC Select Conservative Portfolio |
A |
1.58 % |
1.58 % |
No change |
T5 |
1.59 % |
1.58 % |
-0.01 % |
|
RBC Select Balanced Portfolio |
A |
1.67 % |
1.67 % |
No change |
T5 |
1.67 % |
1.67 % |
No change |
|
RBC Select Growth Portfolio |
A |
1.76 % |
1.76 % |
No change |
T5 |
1.77 % |
1.76 % |
-0.01 % |
|
RBC Select Aggressive Growth Portfolio |
A |
1.85 % |
1.85 % |
No change |
T5 |
1.86 % |
1.85 % |
-0.01 % |
|
RBC Select Choices Conservative Portfolio |
A |
1.69 % |
1.68 % |
-0.01 % |
RBC Select Choices Balanced Portfolio |
A |
1.88 % |
1.87 % |
-0.01 % |
RBC Select Choices Growth Portfolio |
A |
2.06 % |
2.06 % |
No change |
RBC Select Choices Aggressive Growth Portfolio |
A |
2.25 % |
2.25 % |
No change |
RBC Managed Payout Solution |
A |
1.39 % |
1.39 % |
No change |
RBC Managed Payout Solution – Enhanced |
A |
1.58 % |
1.58 % |
No change |
RBC Target 2025 Education Fund |
A |
1.40 % |
0.88%2 |
See note 2 |
D |
0.79 % |
0.69%3 |
See note 3 |
|
RBC Target 2030 Education Fund |
A |
1.59 % |
1.58%4 |
-0.01 % |
D |
0.89 % |
0.87%5 |
-0.02 % |
|
1 As disclosed in the 2022 Interim Management Report of Fund Performance of each Portfolio. |
|
2 Transition to fixed management fee of 1.40% results in no change. Coincident fee reduction based on declining fee schedule as described in the Portfolios' simplified prospectus will result in an effective management fee of 0.88%. |
|
3 Transition to fixed management fee of 0.78%% results in a -0.01% change. Coincident fee reduction based on declining fee schedule as described in the Portfolios' simplified prospectus will result in an effective management fee of 0.69%. |
|
4 Based on declining fee schedule as described in the Portfolios' simplified prospectus, management fees will decrease to 1.40% effective January 1, 2025 and 0.88% effective January 1, 2028. |
|
5 Based on declining fee schedule as described in the Portfolios' simplified prospectus, management fees will decrease to 0.78% effective January 1, 2025 and 0.69% effective January 1, 2028. |
The Independent Review Committee of the Portfolios considered and provided a positive recommendation for the proposed changes after determining that they would achieve a fair and reasonable result for the Portfolios.
Unitholders will be sent a written notice detailing the changes at least 60 days prior to the effective date.
Effective January 1, 2023, the administration fees for the following funds and applicable series will be reduced:
Fund |
Series |
Administration Fee |
|
Current |
Effective January |
||
RBC Emerging Markets Bond Fund (CAD Hedged) |
O |
0.05 % |
0.02 % |
BlueBay Global Monthly Income Bond Fund |
O |
0.10 % |
0.02 % |
BlueBay Global Sovereign Bond Fund (Canada) |
O |
0.05 % |
0.02 % |
BlueBay Global Investment Grade Corporate Bond Fund (Canada) |
O |
0.05 % |
0.02 % |
BlueBay $U.S. Global Investment Grade Corporate Bond Fund (Canada) |
O |
0.05 % |
0.02 % |
BlueBay European High Yield Bond Fund (Canada) |
O |
0.10 % |
0.05 % |
BlueBay $U.S. Global High Yield Bond Fund (Canada) |
O |
0.10 % |
0.05 % |
BlueBay Emerging Markets Bond Fund (Canada) |
O |
0.10 % |
0.05 % |
BlueBay Emerging Markets Local Currency Bond Fund (Canada) |
O |
0.10 % |
0.05 % |
BlueBay Emerging Markets Corporate Bond Fund |
O |
0.10 % |
0.05 % |
BlueBay Emerging Markets High Yield Corporate Bond Fund (Canada) |
O |
0.10 % |
0.05 % |
BlueBay Global Convertible Bond Fund (Canada) |
O |
0.10 % |
0.05 % |
RBC Emerging Markets Balanced Fund |
O |
0.05 % |
0.02 % |
RBC Emerging Markets Multi-Strategy Equity Fund |
O |
0.05 % |
0.02 % |
RBC Emerging Markets Dividend Fund |
O |
0.15 % |
0.10 % |
RBC Emerging Markets ex-China Dividend Fund |
O |
0.15 % |
0.10 % |
RBC Emerging Markets Equity Fund |
O |
0.15 % |
0.10 % |
RBC Emerging Markets Equity Focus Fund |
O |
0.15 % |
0.10 % |
RBC QUBE Low Volatility Emerging Markets Equity Fund |
O |
0.15 % |
0.10 % |
RBC Emerging Markets Small-Cap Equity Fund |
O |
0.15 % |
0.10 % |
RBC Vision Fossil Fuel Free Emerging Markets Equity Fund |
O |
0.15 % |
0.10 % |
RBC GAM Inc. reviews administration fees on an ongoing basis. These fee reductions are part of RBC GAM's commitment to leadership in delivering value to investors.
Administration fees are used to pay for the following operating expenses of a fund: regulatory filing fees, fees and expenses associated with the Independent Review Committee, recordkeeping, accounting and fund valuation costs, custody fees, audit and legal fees, the costs of preparing and distributing annual and semi-annual reports, prospectuses, fund facts, statements and other investor communications.
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 in Canada. RBC GAM Inc. is a member of the RBC GAM group of companies and an indirect wholly owned subsidiary of Royal Bank of Canada.
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 92,000+ 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.
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 $540 billion in assets and have approximately 1,500 employees located across Canada, the United States, Europe and Asia.
SOURCE RBC
Brandon Dorey ([email protected]), RBC GAM Corporate Communications, 416-955-7397
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