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RBC Global Asset Management launches new suite of target maturity corporate bond ETFs


RBC Global Asset Management has launched eight RBC Target Maturity Corporate Bond Exchange-Traded Funds (ETFs). The RBC ETFs are available for purchase by individual and institutional investors on the Toronto Stock Exchange.

“Clients and advisors have been enquiring about an ETF offering of this kind for some time and we are very pleased to be able to bring this innovative structure to market with the full backing and comprehensive capabilities of RBC Global Asset Management,” says John Montalbano, chief executive officer, RBC GAM. “The new suite of RBC ETFs illustrates our commitment to meeting the evolving needs of investors and delivering added value investment solutions that enable investors to construct diverse portfolios reflective of their individual profiles.”

Cary Blake, vice-president, RBC GAM, says: “We employed a thorough evaluation and rigorous research process that incorporated input from advisors and investors. The resulting RBC Target Maturity Corporate Bond ETFs fill a gap in the investment landscape, offering advisors increased flexibility to tailor their bond laddering strategies for clients, serve as a source of cash to match large known future liabilities, and capture perceived opportunities at particular points on the yield curve.”

The RBC Target Maturity Corporate Bond ETFs are designed to act like an individual bond yet provide the diversification and professional oversight of a mutual fund, with the transparency and intra-day liquidity of an ETF. Each RBC ETF provides investors with exposure to the Canadian investment grade corporate bond market by seeking to replicate the performance of the corresponding DEX Maturity Canadian Corporate Bond Index that matures in the same year as the RBC ETF.

Each RBC ETF will maintain a diversified portfolio of individual Canadian investment grade corporate bonds, with effective maturity in the same year as the RBC ETF itself. Each RBC ETF may hold from time-to-time select provincial bonds for enhanced diversification. Like an individual bond, each RBC ETF will mature and terminate in its target year, distributing the remaining principal to then-current investors. The maturity of the respective RBC ETFs will occur on or about November 30 of the target year.

RBC Dexia Investor Services will provide custody and fund administration for the suite of RBC ETFs.

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