RBC Global Asset Management Inc. announces changes to RBC Retirement (2020 to 2060) Portfolios

TORONTO, March 4, 2024 /CNW/ - RBC Global Asset Management Inc. ("RBC GAM Inc.") today announced changes to the asset allocation strategy or "glidepath" for the existing RBC Retirement (2020 to 2060) Portfolios (the "Portfolios").

The Portfolios are designed primarily for investors who are saving money for the purpose of retirement, and use a "glidepath" that adjusts the asset mix of the portfolio relative to a target retirement year. When the investment horizon is long (i.e., the target retirement year is well into the future), the Portfolios invest mostly in equity funds with a focus on delivering growth potential. When the investment horizon is short (i.e., the target retirement year is nearing or has passed), the asset mix becomes more conservative to help preserve capital through income-oriented investments, such as fixed income funds. At launch in 2016, a number of assumptions about the investor were used to design the glidepath for the Portfolios, which were updated in 2020. These assumptions are now being revised to the following:

Glidepath changes

Previous		Revised
Asset Mix	Fixed income funds* (%) / Equity funds (%)	Asset Mix	Fixed income funds* (%) / Equity funds (%)
At age 25	50/50	From ages 25 to 42	10/90
From ages 30 to 55	35/65	From ages 43 to 65	Equity allocation decreases as asset mix becomes more conservative
From ages 55 to 65	Equity allocation decreases as asset mix becomes more conservative
At age 65	60/40	At age 65	60/40 (No change)

With these glidepath changes, the current asset mix for the Portfolios will have a decrease in allocation to fixed income funds, and a corresponding increase in allocation to equity funds.

Asset mix: RBC Retirement (2035 to 2060) Portfolios

Target Retirement Year	Fixed income funds* (%) / Equity funds (%) (Previous)	Fixed income funds* (%) / Equity funds (%) (Revised)
2035	35/65	32/68
2040	35/65	20/80
2045	35/65	11/89
2050	35/65	10/90
2055	35/65	10/90
2060	41/59	10/90

The percentages may vary up to 15% above or below the weightings indicated in the table, as described in the prospectus for the Portfolios. There are no changes to the asset mix for the remaining RBC Retirement (2020 to 2030) Portfolios.

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.

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* May include money market funds

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 94,000+ 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 United States and 27 other countries. Learn more at rbc.com.

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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 $575 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