RBC Global Asset Management has launched RBC QUBE Low Volatility Canadian Equity Fund and RBC QUBE Low Volatility US Equity Fund.
These funds are now available for purchase by individual and institutional investors in Canada.
"In an increasingly complex investment environment, we are pleased to offer a simple way for investors to reduce risk in their equity portfolios," says Bill Tilford, head of quantitative investments at RBC Global Asset Management. "These new funds use quantitative investing to offer investors the upside potential of equities with less risk and volatility than broad market indexes."
RBC QUBE Low Volatility Equity Funds are monitored daily and adjusted to deal with changes to their risk and return profiles. The new funds use a custom risk model that is designed to more accurately measure and forecast risk.
The funds are appropriate for investors who have a long-term investment horizon and who are able to tolerate a medium level of investment risk. The low-volatility strategies are suitable for investors who are seeking a defensive core equity investment with the potential to earn equity-like returns, but with less volatility than a traditional equity portfolio.
The two new funds are available to individual investors through four low-fee options: Series A; Advisor Series and Series F (available via financial advisers); and Series D (available via direct-to-client platforms, PH&N Investment Services and RBC Direct Investing).
The funds are also available to institutional investors through Series O.