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TORONTO, Dec. 8, 2021 /CNW/ - RBC Global Asset Management Inc. ("RBC GAM Inc.") today announced plans to windup all RBC Corporate Class Funds (the "Funds"). Effective on or about March 25, 2022, RBC $U.S. Short Term Income Class will close, and effective on or about April 8, 2022, all remaining Funds will merge into their mutual fund trust equivalents, on a tax-deferred basis.
Mergers of certain Funds
The following Funds will be merged into their equivalent mutual fund trusts, which have the same investment objectives and strategies, on or about April 8, 2022:
RBC Short Term Income Class
RBC Canadian Money Market Fund
BlueBay Global Convertible Bond Class (Canada)
BlueBay Global Convertible Bond Fund (Canada)
Phillips, Hager & North Monthly Income Class
Phillips, Hager & North Monthly Income Fund
RBC Balanced Growth & Income Class
RBC Balanced Growth & Income Fund
RBC Canadian Dividend Class
RBC Private Canadian Dividend Pool
RBC Canadian Equity Class
RBC Private Canadian Equity Pool
RBC QUBE Low Volatility Canadian Equity Class
RBC QUBE Low Volatility Canadian Equity Fund
Phillips, Hager & North Canadian Equity Value Class
Phillips, Hager & North Canadian Equity Value Fund
RBC Canadian Equity Income Class
RBC Canadian Equity Income Fund
RBC Canadian Mid-Cap Equity Class
RBC Canadian Mid-Cap Equity Fund
RBC North American Value Class
RBC North American Value Fund
RBC U.S. Dividend Class
RBC U.S. Dividend Fund
RBC U.S. Equity Class
RBC U.S. Equity Fund
RBC QUBE Low Volatility U.S. Equity Class
RBC QUBE Low Volatility U.S. Equity Fund
RBC U.S. Equity Value Class
RBC U.S. Equity Value Fund
Phillips, Hager & North U.S. Multi-Style All-Cap Equity Class
Phillips, Hager & North U.S. Multi-Style All-Cap Equity Fund
RBC U.S. Mid-Cap Value Equity Class
RBC U.S. Mid-Cap Value Equity Fund
RBC U.S. Small-Cap Core Equity Class
RBC U.S. Small-Cap Core Equity Fund
RBC International Equity Class
RBC International Equity Fund
Phillips, Hager & North Overseas Equity Class
Phillips, Hager & North Overseas Equity Fund
RBC European Equity Class
RBC European Equity Fund
RBC Emerging Markets Equity Class
RBC Emerging Markets Equity Fund
RBC Global Equity Class
RBC Global Equity Fund
RBC QUBE Low Volatility Global Equity Class
RBC QUBE Low Volatility Global Equity Fund
RBC Global Resources Class
RBC Global Resources Fund
Shareholders of the terminating Funds will receive an equivalent series of units of the continuing fund, on a dollar-for-dollar and tax-deferred basis. The terminating Funds will be wound up following the merger.
Shareholders may redeem or switch their holdings in the terminating Funds until market close on April 6, 2022.
Changes to tax legislation have removed the primary benefits of corporate class funds and as a result, RBC GAM Inc. no longer believes it is possible to consistently deliver tax benefits to corporate class shareholders, over the long term, relative to mutual fund trusts.
The Independent Review Committee of the Funds considered and approved the proposed mergers, after determining that they achieve a fair and reasonable result for the terminating Funds.
Closure of RBC $U.S. Short Term Income Class
RBC $U.S. Short Term Income Class will be closed effective on or about March 25, 2022. Shareholders may redeem or switch their holdings in the Fund until market close on March 23, 2022. Any remaining shares will be redeemed, and the proceeds distributed to shareholders.
In the case of the Fund being held in registered plans, the redemption proceeds will remain within the plan. There will be no tax implications as a result of the transactions if shares are held in a registered plan. If shares of the Fund are held in a non-registered account, the closure of the Fund will be treated as a deemed disposition, and may result in a taxable capital gain or loss, depending on each shareholder's individual situation.
Shareholders of the Funds will be sent a written notice detailing changes related to the mergers and closure at least 60 days prior to the effective dates.
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 87,000+ 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 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 $580 billion in assets and have approximately 1,500 employees located across Canada, the United States, Europe and Asia.
SOURCE RBC Global Asset Management Inc.
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