RBC Global Asset Management Inc. announces final details on maturity of RBC Target 2023 Corporate Bond Index ETF

TORONTO, Aug. 17, 2023 /CNW/ - RBC Global Asset Management Inc. ("RBC GAM Inc.") today announced final details regarding the scheduled maturity of RBC Target 2023 Corporate Bond Index ETF (TSX: RQK).

As announced earlier this year, RBC Target 2023 Corporate Bond Index ETF will mature effective the close of business on Friday, September 15, 2023 (the "Maturity Date"). In anticipation of its maturity, subscriptions for units of RBC Target 2023 Corporate Bond Index ETF will no longer be accepted after the close of business today, Thursday, August 17, 2023.

Redemption requests for RBC Target 2023 Corporate Bond Index ETF will be accepted until the close of business on Tuesday, September 12, 2023. RQK is anticipated to be voluntarily delisted from the TSX, at the request of RBC GAM Inc., following the close of business on or about Tuesday, September 12, 2023. Investors may continue to buy or sell units of the ETF on a stock exchange until the delisting date. All units held by investors following the delisting will be subject to mandatory redemption on the Maturity Date.

Prior to the Maturity Date, RBC GAM Inc. will, to the extent reasonably possible, sell and convert the assets of RBC Target 2023 Corporate Bond Index ETF to cash. After paying or making adequate provision for the liabilities and obligations of RBC Target 2023 Corporate Bond Index ETF, RBC GAM Inc. will, as soon as practicable following the Maturity Date, distribute the net assets of RBC Target 2023 Corporate Bond Index ETF pro rata among the unitholders of record on the Maturity Date based on the net asset value (NAV) per unit.

RBC GAM Inc. will issue an additional press release on or about the Maturity Date confirming the final details.

Investors have the option to either invest the proceeds from RBC Target 2023 Corporate Bond Index ETF into a subsequent maturity of an RBC Target Maturity Bond ETF or to utilize the proceeds in a ladder strategy to help manage interest rate and reinvestment risk.

Unlike traditional exchange traded funds (ETFs), which have a perpetual life, RBC Target Maturity Corporate Bond Index ETFs have a specified maturity date established when the ETF is launched. When the ETF reaches the Maturity Date, the ETF's final NAV is returned to the current unitholders.

An RBC Target Maturity Corporate Bond Index 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.

The suite of RBC Target Maturity Bond ETFs focuses on providing investors with simple and transparent access to a wide range of diversified bond portfolios and the ability to manage duration more precisely, through six RBC Target Maturity Government Bond ETFs and six RBC Target Maturity Corporate Bond Index ETFs, with maturities ranging from 2024 to 2029.

For further information regarding RBC ETFs, please visit www.rbcgam.com/etfs.

Commissions, management fees and expenses all may be associated with investments in ETFs. Please read the applicable prospectus or ETF Facts document before investing. ETFs are not guaranteed, their values change frequently and past performance may not be repeated. ETF units are bought and sold at market price on a stock exchange and brokerage commissions will reduce returns. RBC ETFs do not seek to return any predetermined amount at maturity. Index returns do not represent RBC ETF returns. RBC ETFs are managed by RBC GAM Inc., a member of the RBC GAM group of companies and an indirect wholly-owned subsidiary of Royal Bank of Canada.

RBC Target Maturity Corporate Bond ETFs ("TMCBs") have been developed solely by RBC GAM. The TMCBs are not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the "LSE Group"). FTSE Russell is a trading name of certain of the LSE Group companies. All rights in the FTSE Maturity Corporate Bond Indices vest in the relevant LSE Group company which owns the FTSE Maturity Corporate Bond Indices. "FTSE®" is a trade mark of the relevant LSE Group company and is used by any other LSE Group company under license.

About RBC
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 98,000+ 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.

About RBC Global Asset Management
RBC Global Asset Management (RBC GAM) is the asset management division of Royal Bank of Canada (RBC) and includes money managers BlueBay 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 Global Asset Management Inc.

Brandon Dorey, RBC GAM Corporate Communications, [email protected], 416-955-7397